STUDY economics Flashcards
What is the study of decisions made when resources are limited?
Economics
What is something that a human must have to survive?
Needs
Anything else that a person can buy but does not need is called _______.
Wants
What is the term for selecting an item or action from a set of possible alternatives?
Choice
What are tangible things that can be bought and owned?
Goods
What is the work and other things done for consumers for which people pay?
Services
What is the inability to satisfy all wants at the same time?
Scarcity
Factors of production used in the production of goods and services are known as _______.
Resources
What determines the amount of money exchanged for a good or service?
Price
The interaction of supply and demand determines _______.
Price
What is the amount of a good or service that producers are willing and able to sell at a certain price?
Supply
Businesses will produce more products when they can sell them for _______.
Higher prices
What is the amount of a good or service that consumers are willing and able to buy at a certain price?
Demand
When the price goes up, what happens to demand?
Demand goes down
What is given up when a choice is made, specifically the highest valued alternative forgone?
Opportunity cost
What are things that incite or motivate and are used to change economic behavior?
Incentives
Resources available and consumer preferences determine what is _______.
Produced
Consumer preferences and price determine what is _______.
Purchased
